In EMIs, Why Is The Principal less Than The Interest Paid?

I had taken a home loan from ICICI Bank in December 2007 at the rate of 9.25%, for 228 months. In April 2008, interest rate changed to 10.75% which again changed to 11.75% in May 2008. Earlier when the bank sent repayment schedule it showed – for Rs. 7463 paid as EMI – Rs. 1296 paid towards the principal component of the loan and Rs. 6167 paid towards interest.

Now the bank repayment schedule shows a principal payment of Rs. 539 and Rs. 7780 as interest. I don’t understand how principal can be less than interest. For financial year 08-09, the total interest paid comes as Rs. 92,468 and principal is only Rs. 6504.

Is this correct or is the bank fooling me? If it is correct, then please explain me how.


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